Draper said what he does is support heros, like Tesla's Elon Musk, and the founders of Skype. That, he says, is his goal in life. The world, he says, is having troubles economically, and needs more heros.

Draper says Detroit has "lived off this automotive tit long enough." Tesla, he says, "is going to take you to task."

On the subject of crowd funding, Draper notes that he created MeVC, which was a public venture capital fund, but was basically "regulated out of business." Draper says he partially blames regulators, but he also says people are chicken. "We have a law for everything," he says. "We have too many laws. And the regulators are overwhelmed."

He asks, who will give me a ride to the airport? That's crowd sourcing. Then he asks, who will pay a dollar to find a cure for lung cancer? That's crowd funding. The world, he says, is opening up.

Draper says there are big opportunities out there; DFJ went global. He says the world has completely opened up, and global distribution has commoditized. In India, they funded Hotmail, which went totally viral. (Before it was acquired by Microsoft.)

He also says the venture capital industry is changing, via the role of angels and crowd sourcing and incubator, for instance.

He sees opportunity in medicine and investment banking. Another opportunity is in government; he says they have to get more efficient.

Draper says DFJ has reorganized to focus on the most creative entrepreneurs. Anything you innovate should be thinking years and years ahead. We've made distribution around this planet very efficient.

They look for iconoclasts; clever business models, like Amazon, with no inventory and no accounts receivable. You want to put a zero some place on your balance sheet that your competitors don't have (but not in cash or revenues, of course.) They look for black swans, wherever they are.

He's also created this thing called Draper University of Heroes. He bought an old hotel (in San Mateo) and offer 10 week courses to 18-24 year olds. Basically the idea is to train new entrepreneurs. Of the first class of 40, 3 of them got funded.